Wall Street indices reacted to Trump's decision to postpone tariffs on Mexico.
This is reported by Reuters.
Previously, his stringent measures against key trading partners triggered global panic in financial markets, prompting investors to seek refuge in safe assets.
Trump announced that he has postponed the implementation of new tariffs on Mexican goods after Mexico agreed to enhance security at its northern border.
Steve Sosnick, chief market analyst at Interactive Brokers, noted that this "increases the chances for concessions in negotiations with Canada, China, or both countries."
"It's encouraging for the markets that there is a certain pause, which is why they reacted with gains," he explained.
As of 20:00 Kyiv time, the Dow Jones index fell by 151.08 points (-0.34%) to 44,393.58.
The S&P 500 declined by 48.59 points (-0.80%) to 5,991.94, while the Nasdaq Composite lost 241.23 points (-1.23%) to 19,386.11.
Six out of eleven major S&P indicators showed gains, including "defensive" sectors such as healthcare and consumer staples.
Shares of tech giants partially recovered from morning losses, but Nvidia still remained down by 3.3%. The semiconductor index reduced its decline to 1.5%.
Automakers, affected by the threat of tariffs, also partially regained ground: Ford and General Motors fell by just over 1%.
The Russell 2000, which includes small businesses, trimmed its losses to 1.1% after dropping to a three-week low.
Amid the threat of tariff wars, investors continued to invest in bonds and gold. Gold prices reached an all-time high.
The VIX index, measuring market volatility, rose to its highest level in a week but later decreased to 17.72 points.
The S&P 500 recorded 9 new highs and 20 lows for the year, while the Nasdaq noted 29 new highs and 187 lows.
Reminder:
U.S. President Donald Trump signed three orders imposing additional tariffs on goods from Canada, Mexico, and China. This marked the first official decision in the trade war. Leaders of Canada and Mexico promised to respond with similar measures.
Mexican President Claudia Sheinbaum ordered the introduction of retaliatory tariffs in response to the U.S. decision to impose a 25% tariff on all goods coming from Mexico.
Global financial markets declined on Monday, February 3, amid tariffs imposed by U.S. President Donald Trump against Canada, Mexico, and China.
According to Mexican President Claudia Sheinbaum, the U.S. will postpone the implementation of the 25% tariffs on Mexican goods for a month following a "good conversation" with Trump.